Homework Help is Here – Start Your Trial Now!
Business
Accounting
ummins, Inc. (CMI) reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures. Cummins report 734 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: et sales Gross margin let income (in millions) Cummins share of net income oyalty and interest income otal equity, royalty and interest income from investees Current assets oncurrent assets urrent liabilities oncurrent liabilities let assets As of and for the years ended December 31, 2009 $5,554 1,365 427 $ 196 18 2010 $7,107 1,651 668 $321 30 $351 $2,741 1,253 $214 $2,005 1,123 (1.837) (1,406) (499) (390) $1,658 $1,332 2008 $6,610 1,509 498 $ 231 22 $253

ummins, Inc. (CMI) reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures. Cummins report 734 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: et sales Gross margin let income (in millions) Cummins share of net income oyalty and interest income otal equity, royalty and interest income from investees Current assets oncurrent assets urrent liabilities oncurrent liabilities let assets As of and for the years ended December 31, 2009 $5,554 1,365 427 $ 196 18 2010 $7,107 1,651 668 $321 30 $351 $2,741 1,253 $214 $2,005 1,123 (1.837) (1,406) (499) (390) $1,658 $1,332 2008 $6,610 1,509 498 $ 231 22 $253

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Do not give solution in image 

Analyzing and Interpreting Disclosures on Equity Method Investments Cummins, Inc. (CMI) reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures. Cummins reports those investments on its balance sheet at $734 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: Net sales Gross margin Net income (in millions) Cummins share of net income Royalty and interest income Total equity, royalty and interest income from investees Current assets Noncurrent assets Current liabilities Noncurrent liabilities Net assets Cummins share of net assets Liabilities 0 As of and for the years ended December 31, 2009 $5,554 1,365 427 $ 196 x ($ millions) 2010 $7,107 1,651 668 $321 30 $351 $2,741 1,253 (1,837) (499) 18 $ 214 $ 2,005 1,123 (1,406) (390) $1,658 $1,332 $734 $587) 2008 $6,610 (a) What assets and liabilities of unconsolidated affiliates are omitted from Cummins's balance sheet as a result of the equity method of accounting for those investments? Assets 0 x ($ millions) 1,509 498 $ 231 22 $253
Transcribed Image Text:Analyzing and Interpreting Disclosures on Equity Method Investments Cummins, Inc. (CMI) reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures. Cummins reports those investments on its balance sheet at $734 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: Net sales Gross margin Net income (in millions) Cummins share of net income Royalty and interest income Total equity, royalty and interest income from investees Current assets Noncurrent assets Current liabilities Noncurrent liabilities Net assets Cummins share of net assets Liabilities 0 As of and for the years ended December 31, 2009 $5,554 1,365 427 $ 196 x ($ millions) 2010 $7,107 1,651 668 $321 30 $351 $2,741 1,253 (1,837) (499) 18 $ 214 $ 2,005 1,123 (1,406) (390) $1,658 $1,332 $734 $587) 2008 $6,610 (a) What assets and liabilities of unconsolidated affiliates are omitted from Cummins's balance sheet as a result of the equity method of accounting for those investments? Assets 0 x ($ millions) 1,509 498 $ 231 22 $253
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS